Illinois Tool Works (ITW) Tops Q3 EPS by 37c, Revenues Beat
Illinois Tool Works (NYSE: ITW) reported Q3 EPS of $1.83, $0.37 better than the analyst estimate of $1.46. Revenue for the quarter came in at $3.3 billion versus the consensus estimate of $2.97 billion.
- Total revenue of $3.3 billion as revenue increased 29 percent versus Q2 2020
- Operating margin of 23.8%
- GAAP EPS of $1.83
- After-tax ROIC of 29.6%
- Free cash flow was 108% of net income
“We saw solid recovery progress in many of the end markets we serve in the third quarter as evidenced by our revenue being up sequentially 29 percent versus second quarter. Our people around the world responded by leveraging our proprietary business model to provide excellent service to our customers while keeping themselves and their co-workers safe. These efforts and our third quarter financial results support the decisions we made early in the pandemic to provide full compensation and benefits support to all of our ITW team members, to focus on positioning the company for full participation in the recovery, and to remain invested in the key initiatives supporting the execution of our long-term enterprise strategy,” said E. Scott Santi, chairman and chief executive officer. “I am very proud of how the ITW team is managing through this challenging period, and I thank all of my ITW colleagues around the world for their continued exceptional efforts and dedication.”
“In the face of the unprecedented challenges and circumstances brought about by the global pandemic, our strong operational and financial performance over the last several quarters provides further evidence that ITW is a company that has both the enduring competitive advantages and the resilience necessary to deliver consistent upper tier performance in any economic environment. Looking ahead, we remain focused on delivering strong results across a range of economic scenarios while continuing to execute on our long-term strategy to achieve and sustain ITW’s full-potential performance,” Santi concluded.
For earnings history and earnings-related data on Illinois Tool Works (ITW) click here.